News of the Week

The FY 2014 application window closed last Wednesday, March 26th.  A very — and we stress very — preliminary comparison of initial demand of FY 2014 versus FY 2013 is shown in the table below.  Note that the FY 2013 demand shown is as of mid-April 2013, when USAC provided its formal preliminary demand estimate to the FCC.  The FY 2014 demand figures are as of last Thursday, the day after the window closed.  This means that the FY 2014 numbers do not reflect all the paper Form 471s that were filed by mail and have not yet been data entered.

Once USAC provides the FCC with its formal preliminary demand estimate for FY 2014 in April, we would expect the FY 2014 numbers to slightly exceed the comparable figures for FY 2013.

The only new funding definitely scheduled for this week is Wave 111 for FY 2011.  The most recent SLD News Brief (referenced below) indicates that Wave 44 for FY 2013 will be issued on April 4th, but that wave was actually released last week on March 26th.  It is likely that Wave 45 for FY 2013 is scheduled for this coming Friday. 

The Form 471 application window for FY 2014 is closed.  Applications completed online or postmarked after the close will be treated as being received outside the filing window and will not likely be funded without an FCC waiver.

Applicants who successfully submitted their Form 471 applications by the March 26th deadline should do the following:

1. If you mailed your application, certification, and/or attachments by express mail service, track the shipment online and make a copy of the successful delivery notification.  If you used the Postal Service’s return receipt service, retain a copy of the receipt when it’s returned.
2. Periodically check the status of your application on the SLD’s Web site (see Application Status).  At this stage in the application process, the status indicator might read:

Incomplete:  If the application was done online, “Incomplete” means that the application process was abandoned before submission; this would not be a valid application.  If the application was mailed, “Incomplete” means that the application has been received, but that only the basic Block 1 information has been data entered by the SLD.  Mailed applications that were postmarked in time will be upgraded in status as soon as data entry is complete.

Complete:  The application was successfully submitted online, but has not yet been certified (or the mailed-in certification has not yet been data entered).

Certified – In Window:  This status indicator covers the following three situations for applications that were completed within the deadline: (a) the application was submitted and electronically certified online; (b) the application was submitted online and the mailed certification form has been received and recorded by the SLD; or (c) a properly certified application was mailed to the SLD and has been fully data entered.

Certified – Out of Window:  This means that the completed application was not fully submitted on time, i.e., either that a paper application, or the signed certification page of an online application, was postmarked after March 26th.  As long as the application itself was submitted on time, USAC will provide additional, albeit limited, time to submit the certification (see below).

Initial Review:  The application has already been entered into the review process.  Applicants may begin receiving questions on these applications.

Final Review or Available for Quality Assurance:  The application has already been through the initial review process.  This is the first year that we’ve seen a number of applications in the final stages of review at this early date.  Most are likely to be in the first funding wave expected by May.

1. FCC rules require that all certifications and Item 21 attachments be filed within the window.  However, as it has done in the past and as indicated in last week’s News Brief referenced below, USAC will provide some limited time to submit missing certifications and attachments.  Nevertheless, note that USAC cannot review an application without the Item 21 attachments.  Because mailed attachments are sent to Kansas, but PIA review is performed in New Jersey, applicants may get requests from PIA for another copy of their attachments in order to speed application review.
2. Applicants should pay particular attention to the Form 471 Receipt Acknowledgment Letters (“RALs”) that are mailed to applicants who have submitted Form 471s.  The RALs are formatted to permit applicants to easily correct a number of ministerial and clerical (“M&C”) errors that may have been made in their initial filings.  Importantly, allowable corrections include adjustments — even increases — in discount rates and funding requests.

Commissioner Pai Weighs In on E-Rate Reform:

In our newsletter of March 24, 2014, we referenced two speeches by FCC Chairman Tom Wheeler and FCC Commissioner Jessica Rosenworcel discussing their views on revamping the E-rate program.  Last week, in an appearance before the House Subcommittee on Financial Services and General Government, FCC Commissioner Ajit Pai outlined an alternative proposal for what he considers to be a greatly simplified E-rate process (see E-rate portion of Commissioner Pai’s statement).

FCC Comment Period Deadlines:

The FCC’s Public Notice on E-rate modernization (DA 14-308) was released for public comment on March 6th in an abbreviated comment schedule (see our newsletter of March 10, 2014).  Comments are due April 7th and reply comments are due April 21st.

The three most critical proposals subject to comment are:

1. To replace the current two-priority system with a new two-category system, each separately funded.
2. Within each category, to emphasize broadband funding and phase out support for voice and other “legacy” services.
3. To add an additional $2 billion in funding to be spread over FY 2015 and FY 2016.

Tangentially related to E-rate, comments are also being sought on the Report on FCC Process Reform (see Public Notice, our newsletter of February 24, 2014, and E-rate comments already filed by the State E-Rate Coordinators’ Alliance).  The comment period deadline on this proceeding is today, March 31st.  There is no reply comment period.

Form 486 Deadlines:

Typically, a Form 486 must be filed no later than 120 days from FCDL issuance or the start of service, whichever is later.  Assuming services started July 1, 2013, the deadlines for FY 2013 funding waves 1-28 have already passed.  The Form 486 deadlines for April are:

                                          Wave 29                04/07/2014
                                          Wave 30                04/10/2014
                                          Wave 31                04/17/2014
                                          Wave 32                04/28/2014

FCC Appeal Decisions Watch:

The FCC issued the following two appeal orders, both consistent with past precedents:

1. Dulce and Ridgefield Park School Districts (DA 14-400):  The FCC granted the requests from two school districts to reverse USAC decisions reducing funding based on incorrect service start dates originally entered by the districts on their Form 486s.
2. Beaufort County School District et al (DA 14-401):  The FCC granted four requests to approve service substitutions that had been rejected in whole or in part by USAC.  In three cases, the rejections had been based on missed deadlines for requesting the service substitutions; the other involved a rejected correction to a service substitution.

The SLD News Brief for March 28, 2014 discusses a few steps applicants may need to take now that the FY 2014 application window is closed.  It includes instructions to:

• Submit your Item 21 attachments, if necessary.
• Certify your Form 471, if necessary.
• Certify any Form 470 that you cited on a funding request, if necessary.
• Review your RAL and submit any allowable corrections.
• Organize and store your documents.
• Check the status of your technology plan, if applying for Priority 2 products and services.
• Prepare for PIA review.

The News Brief also provides an early warning that invoice deadlines for FY 2013 services have not been extended by one year as is the case for FY 2012 services.  This means that the invoice deadlines for both FY 2012 and FY 2013 services are:

• October 28, 2014 for recurring services.
• January 28, 2015 for non-recurring services.